Statkraft halts investments in new offshore wind

Channels: Investors, Renewables

Companies: Statkraft

People: Christian Rynning-Tønnesen

Statkraft has announced that it will halt all new investments in offshore wind farms, including the world's largest wind farm, off the coast of the UK.

The Norwegian state-owned power company said it made the decision to keep up with promised dividend payments, after the government overturned an earlier decision to inject NOK5 billion ($573.89 million).

Statkraft said it may also postpone some overseas hydropower projects, including two in Chile.

"Offshore wind power is capital intensive. The reduced financial terms from the owner entail that it is not possible for Statkraft to invest in new offshore wind projects," said Statkraft CEO Christian Rynning-Tønnesen.

Statkraft's capital-intensive investment plan came under fire earlier this year when Nordic power prices, which are at record lows, continued their slump, causing fears over its liquidity.

Average spot power prices in Nordic countries fell to a 15-year low of €13.40 ($14.65) per MWh in the third-quarter.

Statkraft said it will honour its investment in the Dudgeon wind farm off the coast of Norfolk, UK. But it will not invest in Dogger Bank – expected to be the world's biggest offshore wind farm.

The Dogger Bank wind farm, which is being constructed by the Forewind consortium, made up of SSE, RWE Innogy, Statoil and Statkraft, had already been scaled back in August

Hamza Ali